The DMZ in Gold

The world is now enthralled with the Olympics in South Korea. It started with talks between the PRK and Korea prior to the games and then both teams marching in together. A show of possible unity. Kim Jung Un’s sister even showed up at the games. How could you not like these communist people from the north? Oh yeah, they are communists that suppress their people. A quick look at the Demilitarized Zone or DMZ puts this back in perspective. You can cross the line in controlled circumstances but not for very long.

Gold seems to have its own DMZ. From the chart below you can see the band around 1300 that has acted as support and resistance several times over the last 2 years. It crossed 1300 to the upside twice prior, in 2016 and then in 2017. Both times it reversed back lower. A third cross happened at the beginning of 2018. It too did not get very far before falling back. But is this time different?

Last week the price of Gold fell back to that DMZ. But this time it bounced. Will it hold up and be free to move higher? Momentum is on its side with the RSI rising again in the bullish zone. Key price levels are 1345 and then 1370 to the upside. A push over that and it is different this time.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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